SpiceJet promoter Ajay Singh, along with Busy Bee Airways Pvt Ltd, has filed a bid to acquire the troubled carrier Go First, announced the airline on Friday. This bid, described as a “significant strategic move with the potential to reshape the landscape of the Indian aviation sector,” was submitted earlier today, SpiceJet stated.
The bid, submitted by Mr. Singh in his personal capacity, outlines SpiceJet as the operating partner for the new airline. It proposes to provide staff, services, and industry expertise, aiming to leverage established infrastructure and operational capabilities for significant revenue expansion.
Ajay Singh expressed confidence in Go First’s potential for revitalization and emphasized the benefits of close synergy between Go First and SpiceJet. He highlighted strategic alignment in flight schedules and destinations to capture a larger market share.
SpiceJet had previously announced its intention to submit an offer for Go First pending clearance of due diligence, aiming to “create an airline in collaboration” with the bankrupt carrier. This news significantly boosted SpiceJet shares, which rose by over seven per cent in December last year. Today’s announcement had a similar effect, with shares increasing by more than 11 per cent at 3:50 PM after reaching an intraday high.
This development follows SpiceJet’s recent announcement regarding measures to reduce its workforce, aiming to lay off 1,400 staff, or 15 per cent of its workforce, to save ₹100 crore annually. While the number of layoffs was reported by the Economic Times, the airline has not confirmed the figure, stating it’s part of turnaround and cost-cutting efforts.
SpiceJet, once India’s second-largest airline, has raised ₹744 crore as part of a refinancing plan, with expectations to infuse ₹2,250 crore in fresh capital.
Go First filed for bankruptcy protection in May last year, and creditors, including Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, have been considering liquidating the airline after failing to secure new investors. The airline has been grounded since May 3, following a voluntary bankruptcy filing before the National Company Law Tribunal, citing delays by a United States-based engine maker.